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Devry ACCT344 final exam




Question;(TCO;2) Which cost is NOT a period cost? (Points: 5);Lumber for furniture;Executive administrative assistant;salary;Depreciation on sales staff's cars;Sales commission;Question;2.2.(TCO;2) Which product would use job-order costing? (Points;5);Ink pens;Custom boot maker;Soda pop;Horse saddles;Question;3.3.(TCO;3) As production occurs, materials, direct labor, and applied;manufacturing overhead are recorded in (Points: 5);cost of goods sold.;work-in-process.;materials.;finished goods.;Question;4.4.(TCO;8) A company keeps 60 days of materials inventory on hand to avoid;shutdowns due to materials shortages. Carrying costs average $5,000 per;day. A competitor keeps 30 days of inventory on hand, and the;competitor's carrying costs average $2,000 per day. The value-added costs;are (Points;5);$300,000.;$150,000.;$60,000.;$0.;Question;5.5.(TCO;8) Which is a value-added activity?(Points: 5);Moving;Inspection;Processing;Waiting;Question;6.6.(TCO;1) The break-even point is (Points: 5);the volume of activity where all;fixed costs are recovered.;where fixed costs equal total;variable costs.;where total revenues equal total;costs.;where total costs equal total;contribution margin.;Question;7.7.(TCO;1) The Kringel Company provides the following information.;Sales (200,000;units);$500,000;Manufacturing costs;Variable;$170,000;Fixed;$30,000;Selling and administrative costs;Variable;$80,000;Fixed;$20,000;Which is the break-even point in units for Kringel? (Points;5);33,334 units;100,000 units;40,000 units;200,000 units;Question;8.8.(TCO;7) Which would be the most appropriate base for allocating the costs of;the maintenance department? (Points: 5);Machine hours;Direct labor hours;Number of employees;Square feet;Question;9.9.(TCO;7) Yo Department Store incurred $8,000 of indirect advertising costs for;its operations. The following data have been collected for 2013 for its;three departments.;Shoes;Cosmetics;Crafts;Sales;$120,000;$100,000;$100,000;Direct;advertising costs;$9,000;$7,000;$4,000;Newspaper;ad space;60%;20%;20%;How much of the indirect advertising costs will be allocated to the;Cosmetics Department if newspaper ad space is the activity driver?(Points: 5);$8,000;$1,600;$1,400;$6,400;Question;10.10.(TCO;5) Which best describes zero-base budgeting? (Points;5);A budget that is developed for a;single level of activity;A budget that analyzes existing;activities (and continuation of that activity must be justified and;resources needed must be justified by each manager);A budget that is based solely on;prior period information, adjusted for inflation;A budget that is continuous or;rolling;Question;11.11.(TCO;5) Bug Company manufactures buggies. Manufacturing a buggy takes 20 units;of wood and 1 unit of steel. Scheduled production of buggies for the next;2 months is 500 and 600 units, respectively. Beginning inventory is 4,000;units of wood and 30 units of steel. The ending inventory of wood is;planned to decrease 500 units in each of the next 2 months, and the steel;inventory is expected to increase 5 units in each of the next 2 months.;How many units of wood are expected to be used in production during the;second month?(Points;5);12,500 units;10,000 units;15,000 units;12,000 units;Question;12.12.(TCO;4) Which statement is true? (Points: 5);Absorption costing net income;exceeds variable costing net income when units produced and sold are equal.;Variable costing net income exceeds;absorption costing net income when units produced exceed units sold.;Absorption costing net income;exceeds variable costing net income when units produced are less than units;sold.;Absorption costing net income;exceeds variable costing net income when units produced are greater than;units sold.;Question;13.13.(TCO;6) Using more highly skilled direct laborers might affect which;variance?(Points;5);Direct materials usage variance;Direct labor efficiency;variance;Variable manufacturing overhead;efficiency variance;All of the above;Question;14.14.(TCO;6) Which equation measures the total budget variance? (Points;5);AQ x (AP - SP).;SP x (AQ - SQ).;SQ x (AP - SP).;(AQ x AP) - (SQ x SP).;(TCO 1) George Corporation has an;estimated monthly sales of 12,000 units for $80 per unit. Variable costs;include manufacturing costs of $50 and distribution costs of $20. Fixed costs;are $60,000 per month.;Required;Determine each of the following values.;a. Unit contribution margin;b. Monthly break-even unit sales volume;Create a contribution margin-based income statement.(Points: 30);Question 2.2.(TCO 7) Darling Manufacturing Inc. manufactures two;products, A and B, from a joint process. A single production costs $5,000 and;results in 200 units of A and 800 units of B. To be ready for sale, both;products must be processed further, incurring seperable costs of $3 per unit;for A and $4 per unit for B. The market price for Product A is $15 and for;Product B is $10.;Required: Allocate joint production costs to each product using the net;realizable value method.(Points: 30);Question 3.3.(TCO 6) Santa Inc. manufactures toys based on the;following information.;Standard costs;Materials (4 ounces at $4);$16;Direct labor (1 hour per unit);$7;Variable overhead (based on direct labor hours);$3.50;Fixed overhead budget;$16,000;Actual results and costs;Materials purchased;Units;10,000;Cost;$38,500;Materials used in production;Finished product units;2,200;Raw material (ounces);9,500;Direct labor hours;2,200;Direct labor cost;$18,000;Variable overhead costs;$8,400;Fixed overhead costs;$16,200;Required;Compute the following variances (show calculations).;a. Materials usage variance;b. Labor rate variance;-c. Fixed overhead budget variance;(Points: 30);Question 4.4.(TCO 4) Toshi Company incurred the following costs in;manufacturing desk calculators.;Direct;materials;$14;Indirect materials;(variable);4;Direct;labor;8;Indirect labor (variable);6;Other variable factory;overhead;10;Fixed factory;overhead;28;Variable selling;expenses 20;Fixed selling;expenses;14;During the period, the company produced and sold 1,000 units.;a. What is the inventory cost per unit using absorption costing?;b. What is the inventory cost per unit using variable costing?(Points: 30);Question 5.5.(TCO 8) Musical Instruments Company manufactures two;products (trumpets and trombones). Overhead costs ($175,000) have been;divided into three cost pools that use the following activity drivers.;Product;Number of setups;Machine hours;Packing orders;Trumpets;50;1,500;150;Trombones;50;4,500;250;Cost per pool;$60,000;$90,000;$25,000;Required (show all calculations);a. What is the allocation rate for trumpets per setup using activity-based costing?;b. What is the allocation rate for trumpets per machine hours using activity-based costing?;c. What is the allocation rate for trumpets per packing order using activity-based costing?;(Points: 30);Question 6.6.(TCO 5) The Baxter Corporation has the following budgeted;and actual results.;Budgeted data;Actual results;Unit sales;35,000;Unit sales;36,000;Unit production;35,000;Unit production;37,000;Fixed overhead;Fixed overhead;Supervision;$25,000;Supervision;$23,500;Depreciation;$40,000;Depreciation;$40,000;Rent;$20,000;Rent;$20,000;Variable costs per unit;Variable costs;Direct materials;$25.00;Direct materials;$900,000;Direct labor;$26.00;Direct labor;$950,000;Supplies;$0.25;Supplies;$9,000;Indirect labor;$1.30;Indirect labor;$50,000;Electricity;$0.20;Electricity;$7,500;Required;Prepare a performance report for;all costs, showing flexible budget variances (indicate F or U).


Paper#41478 | Written in 18-Jul-2015

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